Naftogaz in int'l court names cost of assets Russia seized in Crimea

NJSC Naftogaz of Ukraine and enterprises belonging to the Naftogaz group in late June filed a claim with the Tribunal at the Permanent Court of Arbitration in The Hague on the amount of compensation for losses caused by the expropriation of the group's assets in Crimea. Naftogaz asks the Tribunal to oblige the Russian Federation to pay $5.2 billion to the plaintiffs. It is expected the Tribunal will decide on compensation for damages no earlier than in late 2020, as reported by the Naftogaz press service.

The company recalled the Tribunal had already admitted that the Russian Federation violated a number of provisions of the Investment Protection Agreement by expropriating the assets of the Naftogaz group in Crimea. Since the Tribunal has decided to consider the proceedings in two stages, while the issue of determining damages will be considered during the second one. As was reported earlier, Russia seized drilling rigs and other assets of Ukraine's Chornomornaftogaz during the annexation of the Crimean peninsula in 2014. National Joint-Stock Company Naftogaz of Ukraine has lost control over the enterprise. Naftogaz said it would sue Russia over Crimean assets.